In today's world trade, the dollar has always occupied the supreme position, and for many years, the United States has used the dollar hegemony to become the hegemon of the global economy. However, with the increasing debt scale, the US debt has become a problem that cannot be ignored. How to get rid of the hegemony of the dollar in the future will become a very important issue in the world.
If we want to get rid of the dollar hegemony, we must first understand the specific performance of the dollar hegemony. First of all, the hegemony of the US dollar lies in the uniqueness of the US dollar as the world currency. The US dollar is an international medium of exchange and means of payment and clearing instead of gold. Without the dollar, countries cannot expand imports, borrow foreign debt, or invest internationally. Therefore, when countries trade, they must obtain dollars and earn dollars in order to introduce international advanced technology and equipment, so the role of the dollar is irreplaceable in a short time.
Secondly, dollar hegemony is more manifested as the United States can use the dollar to negotiate prices, which has its own uniqueness. With the dollar as the world's currency, the United States must run a trade deficit so that other countries can hold dollars and then repatriate them through the capital account. In short, in the balance of payments of the United States, there must be a deficit, otherwise the dollar can not outflow, so the increase in dollar foreign exchange reserves of countries is actually a manifestation of the outflow of dollars, the performance of the United States trade deficit in goods, or the performance of the United States securities capital outflow.
Finally, the hegemony of the US dollar is characterized by the authoritarianism of using the account and payment system under the paper currency system to restrict, freeze, confiscate and other sanctions on the funds, asset transactions and payments on the account. It can be seen that because of the sovereign currency characteristics of the US dollar, holding US dollar assets is very risky.
It can be seen that the hegemony of the US dollar has become an obstacle to the healthy development of the global economy, and how to break the hegemony of the US dollar in the future has become the common will of all countries in the world. Although countries including China and Russia have taken measures to get rid of the hegemony of the dollar, with the current economic status of the United States, it is still difficult to break the hegemony in a short time. The following points should be done in the future:
First, promote international currency diversification. All countries in the world should make joint efforts to promote the establishment and improvement of multilateral mechanisms, strengthen the coordination and supervision of the international monetary system, and promote the development and use of various currencies. At the same time, by expanding the scope of use of the national currency in the international market, improve its status in international settlement, trade and investment, and enhance the international influence and competitiveness of the national currency.
Second, strengthen international financial cooperation. At present, the financial exchanges and cooperation between countries in the world have become increasingly close, but the hegemony of the US dollar makes the control of global financial affairs too large, which is not conducive to the balanced development of the financial system of various countries. By strengthening international financial cooperation, countries can jointly explore and promote financial innovation, promote the development of global fintech, and achieve inclusive and sustainable development of global financial business.
Third, promote balanced international trade. The US dollar has always been the most dominant settlement currency in international trade, which has caused other countries to be affected by the fluctuations of the US dollar in their trade. Therefore, promoting the diversification of the international monetary system, such as increasing the use of other currencies such as euro and RMB in international trade, can effectively reduce the impact of US dollar hegemony on international trade and promote the balanced development of trade. All these measures are conducive to reducing the impact of the hegemony of the US dollar on international trade and achieving balanced development of trade.
Of course, getting rid of the hegemony of the US dollar is not something that can be achieved overnight, and it needs reasonable countermeasures, as well as many factors such as the right time, geographical location and people. Only by getting rid of the shackles of the US dollar can countries achieve sustainable economic development.
